BOSTON--(BUSINESS WIRE )--Desktop Metal, Inc. (NYSE: DM) today announced its financial results for the quarter ended March 31, 2022.
“Following a revolutionary year in which we made significant progress building a foundation of AM 2.0 technologies to achieve our goal of double-digit share of the additive market by the end of the decade, we are off to a great start to 2022,” said Ric Fulop, Founder and CEO of Desktop Metal. “We delivered strong topline growth of 286% year-over-year as we continue to capture market share and rapidly grow revenue at scale. With several exciting product launches to kick off the year, and demand as strong as ever for our broad portfolio of AM 2.0 solutions, we are well-positioned for outsized growth and margin expansion through the balance of 2022.”
First Quarter 2022 and Recent Business Highlights:
Desktop Metal will host a conference call on Tuesday, May 10, 2022 at 8:00 a.m. EST to discuss first quarter 2022 results. Participants may access the call at 1-855-560-2573, international callers may use 1-412-317-5237, and request to join the Desktop Metal financial results conference call. A simultaneous webcast of the conference call and the accompanying summary presentation may be accessed online at the Events & Presentations section of https://ir.desktopmetal.com. A replay will be available shortly after the conclusion of the conference call at the same website.
Desktop Metal, Inc., based in Burlington, Massachusetts, is accelerating the transformation of manufacturing with an expansive portfolio of 3D printing solutions, from rapid prototyping to mass production. Founded in 2015 by leaders in advanced manufacturing, metallurgy, and robotics, the company is addressing the unmet challenges of speed, cost, and quality to make additive manufacturing an essential tool for engineers and manufacturers around the world. Desktop Metal was selected as one of the world’s 30 most promising Technology Pioneers by the World Economic Forum, named to MIT Technology Review’s list of 50 Smartest Companies, and the 2021 winner of Fast Company’s Innovation by Design Award in materials.
For more information, visit www.desktopmetal.com.
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this document, including but not limited to risks associated with the integration of the business and operations of acquired businesses, our ability to realize the benefits from cost saving measures, and supply and logistics disruptions, including shortages and delays. For more information about risks and uncertainties that may impact Desktop Metal’s business, financial condition, results of operations and prospects generally, please refer to Desktop Metal’s reports filed with the SEC, including without limitation the “Risk Factors” and/or other information included in the Form 10-Q filed with the SEC on May 10, 2022, and such other reports as Desktop Metal has filed or may file with the SEC from time to time. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Desktop Metal, Inc. assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
DESKTOP METAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share amounts)
Current portion of restricted cash
Prepaid expenses and other current assets
Restricted cash, net of current portion
Current portion of lease liability
Accrued expenses and other current liabilities
Current portion of deferred revenue
Current portion of long‑term debt, net of deferred financing costs
Long-term debt, net of current portion
Contingent consideration, net of current portion
Lease liability, net of current portion
Deferred revenue, net of current portion
Preferred Stock, $0.0001 par value—authorized, 50,000,000 shares; no shares issued and outstanding at March 31, 2022 and December 31, 2021, respectively
Common Stock, $0.0001 par value—500,000,000 shares authorized; 312,999,991 and 311,737,858 shares issued at March 31, 2022 and December 31, 2021, respectively, 312,825,572 and 311,473,950 shares outstanding at March 31, 2022 and December 31, 2021, respectively
Total Liabilities and Stockholders’ Equity
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts)
Change in fair value of warrant liability
Interest and other (expense) income, net
Net loss per share—basic and diluted
Weighted average shares outstanding, basic and diluted
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) (in thousands)
Other comprehensive (loss) income, net of taxes:
Unrealized gain (loss) on available-for-sale marketable securities, net
Total comprehensive (loss) income, net of taxes of $0
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED) (in thousands, except share amounts)
Exercise of Common Stock options
Vesting of restricted Common Stock
Vesting of restricted stock units
Repurchase of shares for employee tax withholdings
Issuance of Common Stock for acquisitions
Vesting of Trine Founder shares
Exercise of Common Stock options
Vesting of restricted Common Stock
Vesting of restricted stock units
Repurchase of shares for employee tax withholdings
Issuance of Common Stock for acquisitions
Vesting of Trine Founder shares
DESKTOP METAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (in thousands)
Cash flows from operating activities:
Adjustments to reconcile net loss to net cash used in operating activities:
Change in fair value of warrant liability
Amortization (accretion) of discount on investments
Amortization of debt financing cost
Loss on disposal of property and equipment
Foreign exchange (gains) losses on intercompany transactions, net
Net increase (decrease) in accrued interest related to marketable securities
Net unrealized (gain) loss on marketable securities
Net unrealized (gain) loss on equity investment
Change in fair value of contingent consideration
Foreign currency transaction (gain) loss
Changes in operating assets and liabilities:
Prepaid expenses and other current assets
Accrued expenses and other current liabilities
Current portion of deferred revenue
Change in right of use assets and lease liabilities, net
Net cash used in operating activities
Cash flows from investing activities:
Purchases of property and equipment
Proceeds from sale of property and equipment
Proceeds from sales and maturities of marketable securities
Cash paid for acquisitions, net of cash acquired
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from reverse recapitalization, net of issuance costs
Proceeds from the exercise of stock options
Proceeds from the exercise of stock warrants
Payment of taxes related to net share settlement upon vesting of restricted stock units
Net cash provided by financing activities
Effect of exchange rate changes on cash, cash equivalents and restricted cash
Net increase (decrease) in cash, cash equivalents, and restricted cash
Cash, cash equivalents, and restricted cash at beginning of period
Cash, cash equivalents, and restricted cash at end of period
Supplemental disclosures of cash flow information
Reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets that sum to the total shown in the condensed consolidated statements of cash flows:
Restricted cash included in other current assets
Restricted cash included in other noncurrent assets
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows
Non‑cash investing and financing activities:
Net unrealized (gain) loss on investments
Exercise of private placement warrants
Common Stock issued for acquisitions
Additions to right of use assets and lease liabilities
Purchase of property and equipment included in accounts payable
Transfers from property and equipment to inventory
Transfers from inventory to property and equipment
This press release contains non-GAAP financial measures, including Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA.
In addition to Desktop Metal’s results determined in accordance with GAAP, Desktop Metal’s management uses this non-GAAP financial information to evaluate the Company’s ongoing operations and for internal planning and forecasting purposes. We believe that this non-GAAP financial information, when taken collectively, may be helpful to investors in assessing Desktop Metal’s operating performance.
We believe that the use of Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends because it eliminates the effect of financing, capital expenditures, and non-cash expenses such as stock-based compensation and warrants, and provides investors with a means to compare Desktop Metal’s financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Our computation of these measures may not be comparable to other similarly titled measures computed by other companies because not all companies calculate these measures in the same fashion.
Because of these limitations, Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, non-GAAP operating expense, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Non-GAAP gross margin, non-GAAP operating loss, non-GAAP net loss, EBITDA and Adjusted EBITDA on a supplemental basis. Management uses, and investors should consider, our non-GAAP financial measures only in conjunction with our GAAP results.
Set forth below is a reconciliation of each Non-GAAP financial measure used in this press release to its most directly comparable GAAP financial measure.
DESKTOP METAL, INC. NON-GAAP RECONCILIATION TABLE
For the Three Months Ended
Stock-based compensation included in cost of sales
Amortization of acquired intangible assets included in cost of sales
Acquisition-related and other transactional charges included in cost of sales
Inventory step-up adjustment in cost of sales
Amortization of acquired intangible assets
Inventory step-up adjustment in cost of sales
Acquisition-related and other transactional charges
Amortization of acquired intangible assets
Inventory step-up adjustment in cost of sales
Acquisition-related and other transactional charges
Change in fair value of investments
Change in fair value of warrant liability
DESKTOP METAL, INC. NON-GAAP OPERATING EXPENSE RECONCILIATION TABLE
For the Three Months Ended
Stock-based compensation included in operating expenses
Amortization of acquired intangible assets included in operating expenses
Acquisition-related and other transactional charges included in operating expenses
DESKTOP METAL, INC. ADJUSTED EBITDA RECONCILIATION TABLE
For the Three Months Ended
Net loss attributable to common stockholders
Change in fair value of warrant liability
Change in fair value of investments
Acquisition-related and other transactional charges
Investor Relations: Jay Gentzkow (781) 730-2110 jaygentzkow@desktopmetal.com
Press Contact: Lynda McKinney (978) 224-1282 lyndamckinney@desktopmetal.com
Investor Relations: Jay Gentzkow (781) 730-2110 jaygentzkow@desktopmetal.com
Press Contact: Lynda McKinney (978) 224-1282 lyndamckinney@desktopmetal.com